The Clean Development Mechanism (CDM) is the only policy instrument under the Kyoto Protocol that mobilizes greenhouse gas emissions reductions in developing countries. The basic idea of the CDM is based on the principle of offsetting emissions—one tonne of CO 2 eq reduction from a project in developing countries generates an emissions credit (Certified Emissions Reduction, CER) of 1 t CO 2 eq that can be used by industrialized countries for compliance with their Kyoto targets. To ensure the environmental integrity of the overall Kyoto Protocol system, it is...